FTC warns unauthorized wireless charges becoming a significant problem

The FTC recommends that wireless carriers give customers the option to block all third-party charges from their bills
The FTC recommends that wireless carriers give customers the option to block all third-party charges from their bills

The consumer watchdog said that wireless carriers should give customers the option to block all third-party charges from their bills.

“Mobile cramming is likely to continue to grow as cramming schemes expand beyond the landline platform and mobile phones are more commonly used for payments”, the FTC said in comments to the Federal Communication Commission, which is considering action to stem cramming.

Many of the cramming complaints received by the FTC involve recurring charges of just under $10 a month for “premium services” that provide trivia or horoscope information by text message to a consumer’s phone, the comment states. Consumers often report receiving a text message informing them of a subscription to a service of which they have never heard and never requested. In some cases, these charges can result from malware infecting the wireless phone, which then racks up premium service charges.

“At a minimum, all wireless providers should offer their customers the ability to block all third-party charges. Wireless providers should clearly and prominently inform their customers that third-party charges may be placed on the consumers’ accounts and explain how to block such charges at the time accounts are established and when they are renewed. And wireless providers should provide a clear and consistent process for customers to dispute suspicious charges placed on their accounts and obtain reimbursement”, the agency recommended.
 

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